Indonesia, The Center of World Islamic Law Insurance (3)

There is an impression in society that industrial is only suitable for the middle class society and the high one. While for low society is not. How is Islamic perspective about the main aim of insurance?
Yes, there is still an impression like that, but soon it will change as long as the socialization is done continuously. I had explained above that many functions of insurance such as health, accident, death, that mostly for the low class society.

The insurance like working Insurance, Life Insurance, Social and Working Insurance, and Ground Forces Insurance are insurances for middle class to low class society. But people do not know it.
Another product that is needed to be the focus of insurance industrial for now is micro insurance. This market is very great and has not been managed, such as insurance for small sellers who are selling traditional food like cendol and combro, informal sector, farmers, small merchants, and the others.
This product is being developed by the other friends in some districts such as in West Java, the name is Takmin Insurance. It is an innovative product for low class society.

What thing becomes the main difference between Islamic Law Insurance and Conventional Insurance?
Many people say that Islamic Law is the same with the conventional, including Islamic Law Insurance. I told that it is wrong. Kiai Ma’ruf Amin, the leader of DSN (National Islamic Law Organization) MUI, even ever said,”The difference is the same between the seventh sky with the well on the ground.” Surely, he must be joking. But I, as a practician of it, agree with that statement, because operationally it is different. The difference process is in omitting forbidden things by Islamic Law in conventional insurance activity. In Islamic word, we omit the illat or the reason why the conventional is forbidden. If we see from the Islamic Law aspect, the difference is because in Islamic Law Insurance there is no more forbidden things such as gharar, maisyir, and riba. Economically, the products of Islamic Law Insurance is better than conventional.

Now, conventional insurance apply a term of ‘NO CLAIM BONUS’ as the ‘opposite’ of the share concept. Is it the change from conventional to adapt with Islamic Law system?
Yes, No claim bonus in conventional mostly used as the ‘weapon’ against the Islamic Law Insurance in market. But actually, no claim bonus is a term that is ‘similar but not the same’ with mudharabah (share) in Islamic Law. Both give change or share if not there will be claim or difference between premium and total claim at the end of the contract.
It is the same until here. But, no claim bonus in Islamic Law is illegal because the system is conventional in where there is still gharar, maisyir, and riba inside. While the ‘share’ is because the system used is Islamic Law so it is legal.
If it is illustrated, no claim bonus is identical with fried chicken that is twisted (isn’t cut by saying basmallah) so it is illegal, while the share in Islamic Law is fried chicken that is cut by saying basmallah so it is legal. The taste can be the same, but the process is different.
Source : Republika, 25 July 2009